UAE expats are aiming to save more money, buy properties amid rising rents

Increasing rental prices are encouraging individuals to consider property investments as a means to yield profitable returns

From engaging in part-time employment alongside their primary jobs to relocating to more remote regions, residents in the UAE are going to great lengths to accumulate savings and invest in real estate.

Reports on property trends suggest that rental prices in Dubai will persist in their upward trajectory in 2024, though at a more moderate rate.

Romanian expat in Dubai, Alexandar Michael said “I have an existing property in Dubai that I bought years ago, but now I want to buy again as rents are going up. The reason behind it is to save costs in the long term by not paying rent. I am also looking at capital appreciation since Dubai is a popular and beautiful city.”

Alexander highlights reducing expenses and adjusting one’s lifestyle becomes crucial when aiming for a significant goal like purchasing a property. “One must aim to increase savings. I have a full-time job as a customer service executive working for an airline, but I also explore other opportunities of making extra cash by having other occupations, whenever time permits. I teach yoga for instance. At the end of the day, everything adds up.”

Alexander is presently considering marriage and, in the future, plans to start a family. Consequently, he wants to opt for a townhouse.

“The areas that I have identified are new developments. I have not considered established areas like the Springs because of the high prices. I’m planning to look at Sports City. The project that I like is Tilal Al Ghaf. It’s a new developer, Majid Al Futtaim. But the product is really beautiful. I want to look for a project that is about to be delivered,” said the expat, who has been in the UAE for the past 18 years.

Similarly, a French expat in Dubai, Christine Quartier La Tente, moved out of the Springs community that she much loved due to escalating rents.

She explains the motivation behind her decision to relocate to Damac Hills 2, a community situated farther from the city along Al Qudra Road. Despite the distance, this area boasts a variety of budget-friendly properties while still providing an impressive lifestyle.

“We decided to purchase a house, but encountered an obstacle as securing a long-term loan is not feasible due to our age in our 50s.”

Additionally, they were averse to committing to such an extended loan term. “Opting for a shorter loan period necessitates careful consideration of cash flow, entailing various existing household financial commitments.”

She explains, realising the associated risks, they concluded that buying a house to reside in was not a viable option now.